Assume that Country A and Country B have the same resources, but that individuals in Country A have specialized whereas individuals in Country B have not. Given this information, you can determine that
A. Country A will have a lower output than Country B.
B. individuals in Country A will have lower incomes than individuals in Country B.
C. Country A will have a higher output than Country B.
D. Country A and Country B will have identical outputs.
Answer: C
You might also like to view...
The riskiness of an asset that is unique to the particular asset is
A) systematic risk. B) portfolio risk. C) investment risk. D) nonsystematic risk.
If a firm's total cost rises as output rises, then
a. marginal cost is positive b. profit cannot be maximized c. total cost is minimized d. marginal cost equals marginal revenue e. the firm should shut down in the short run
Stagflation is a combination of:
A. high and accelerating inflation and high unemployment. B. low and decelerating inflation and high unemployment. C. high and accelerating inflation and low unemployment. D. low and decelerating inflation and low unemployment.
Immediately after World War II, the United States ran trade:
A. deficits and was an international borrower. B. deficits and was an international lender. C. surpluses and was an international borrower. D. surpluses and was an international lender.